GL Account conversion from Balance sheet account to P&L

[Former Member]

Hi,

We would like to change one GL Account from Balance sheet account to P&L. The GL account is Divident paid and organization paid divident in year 2009 and this account currently maintained as balance sheet account. This Balance of 2009 is now carry forwarded to 2010. But logically this account should be maintained as P&L Account and the amount should be deducted from retained earning account.

So how can we convert this account to P&L account type. Do we need to first offset or reverse the entry which took place in Balance sheet account. Once the balance is zero, then can we convert into P&L account.

Regards,

Shree.

[ravichandran_iyer]

It is not advisable to 'convert' a B/S Account to P&L and vice versa. This will create inconsistencies in the system. The best way is to create a new P&L account, transfer the balances into the new account and then block the B/S account for posting.

Ravi.

[Former Member]

This message was moderated.

[durgasankar_innamuri]

Hi,

As said by others better to transfer balances to P/L account.

If the account is a P/L account then at the year end while doing balance carryforward this balance will move to retained earnings account.

Check once the same in development server also.

Regards,

Sankar

[Former Member]

Hi Sankar,

Thanks for the input. So to transfer the balance we need to just post an adustment accouting entry which will offset the existing incorrect account and post the balance to new P&L account. After doing this blocking the old account. Let me know if you other option avaiable.

Reg...

[durgasankar_innamuri]

Hi,

Assuem wrong balance sheet account has a balance of 1000 Dr

Now you need to pass a entry like correct P/L account Dr 1000

wrong balance sheet account Cr 1000

While passing this entry P/L account requires one cost object.

After you pass the above entry clear the two line items of wrong balance sheet through F-03. After that go to FS00 and block this gl account for postings.

Regards,

Sankar

[Former Member]

Will Depend on a lot of other factors also like whether used by any other company code at the coa level and if defined as a recon account type. Give it a try and look at the error message.

But the more appropriate way would be to create a new P&L account and transfer the balance to it.

Pankaj

Edited by: Pankaj Agrawal on Jul 29, 2010 7:32 AM